Solve the problem.
-An accountant tabulated a firm's profits for four recent years in the following table: The accountant then fit both a linear graph and an exponential curve (seen below)to the data, in order to estimate future profits. Use the linear graph to estimate the profits in the year 2001.
A)About $900,000
B)About $800,000
C)About $500,000
D)About $700,000

Question

Solve the problem.
-An accountant tabulated a firm's profits for four recent years in the following table:  The accountant then fit both a linear graph and an exponential curve (seen below)to the data, in order to estimate future profits. Use the linear graph to estimate the profits in the year 2001. 
A)About $900,000 
B)About $800,000 
C)About $500,000 
D)About $700,000

Quizplus · Accepted Answer

Looking at the linear graph, we can see that the profits are increasing at a roughly constant rate each year. Therefore, we can estimate the profit in 2001 by extrapolating the trend from the previous years. The profit in 1999 was approximately $550,000, and the linear trend shows an increase of about $150,000 per year. Thus, we can estimate the profit in 2001 to be approximately $850,000 ($550,000 + 2*$150,000). The closest choice is D, which is about $700,000.

Solve the Problem. -An Accountant Tabulated a Firm's Profits for Four Recent Years